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Bed Bath & Beyond Looks for Double Digit Growth in Earnings

It's always nice when a store you like to shop in becomes a success. Bed Bath and Beyond (BBBY) is that kind of store. I'm a kitchen gadget freak, so I love this store. I try not to be an impulse shopper, but as I wander the store I sometimes find bargains I didn't expect and can't pass up. Today I can't pass up the stock. Same store sales are up 7% year over year. They are on target to add 40 new stores this year and another 40 to 50 next year. Margin squeezes have been offset by savings in SG&A so I think this looks like a well managed company. The price is on a roll.


Technical reasons to consider:

- 96% Barchart technical buy signal
- Trend Spotter buy signal
- 11 new highs and up 25.10% in the last month
- Relative Strength Index 80.94% and climbing
- Trades around 57.02 with a 50 day moving average of 49.28

Fundamental reasons to consider:

- Wall Street brokerage analysts are high on this stock
- They have published 9 strong buy, 2 buy and 14 hold recommendations
- Sales are expected to increase by 7.40% this year and 7.00% next year
- Earnings are estimated to increase by 15.30% this year, 14.40% next year and 13.41% next 5 years

Investor Sentiment considerations:

- Stock is widely followed on Motley Fool with 1636 individual investors giving an opinion
- CAPS members vote 988 to 202 that the stock will beat the market
- The more experienced All Stars vote the same way by 402 to 44

Bed Bath and Beyond should be on you watch lists.
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